People who report being not in the labor force but who, in fact, want to work but have given up trying to find a job after an unsuccessful search cause the reported unemployment rate to be lower than it would otherwise be.

Question

Quizplus · Accepted Answer

These individuals are not counted as part of the labor force since they are not actively seeking employment, thus they do not contribute to the unemployment rate, making the reported unemployment rate lower than it might be if they were included.

People Who Report Being Not in the Labor Force but Who